EUR/USD Current price: 1.3494


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All hell is about to break lose in the US, and Republicans and Democrats agree in just one matter: the other side’s demands are unreasonable, and will be the one to blame, if the government shuts down next Tuesday.  This is the main theme across the board, and will likely do little favor to the greenback, unless both parties come to an agreement over the next 24 hours. Keep in mind, if the US government actually fails to reach an agreement, all scheduled fundamental data will be suspended, including Nonfarm payrolls on Friday. With the US currency already under pressure across the board, the EUR/USD does not have it easy: Italian government is also nearing collapse as all five ministers in Berlusconi’s part have resigned for the government coalition. The country faces the need of forge a fresh coalition or end up with new elections.


The EUR/USD gaped lower early opening and trades right below 1.3500, after failing to take over 1.3570 resistance past Friday. With a double roof at mentioned high, the pair has so far managed to bottom around 1.3460, where the neckline of the figure stands. Technically bearish, a break below the level should signal a 100 pips slide for today, although a recovery back above 1.3530 area, should deny the possibility of a downward corrective movement, and see a new challenge of mentioned highs.


Support levels: 1.3490 1.3460 1.3420


Resistance levels: 1.3535 1.3570 1.3615 



EUR/JPY Current price: 131.95


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Yen has found room to strengthen on US woes, and potential risk to the downside increases exponentially with latest developments. If the US government actually shuts down, the yen will be the currency to buy. As for the EUR/JPY, the pair broke well below 132.60 former support now key resistance, presenting a strong bearish tone in the hourly chart. The pair may attempt to fill the gap, but seems way too much as per ongoing risk environment: price needs to recover above 132.20 to attempt a test of the 132.60/80 yet if rejected from this last, bearish pressure will likely see fresh daily lows today. 100 DMA stands around 130.40, probable bearish target in case of more yen gains.


Support levels: 131.70 131.10 130.40


Resistance levels: 132.20 132.60 133.00



GBP/USD Current price: 1.6146


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Pound maintains the status of being the strongest currency across the board, and trades a few pips above Friday’s high against the greenback. The hourly chart shows price well above a still bullish 20 SMA, with RSI heading slightly higher near 70 and momentum diverging strongly from price, retracing from overbought territory and nearing the 100.00 level. In the 4 hours chart indicators also lose upward potential and turn south, although there’s little room for slides as long as 1.6100 holds. Further upside acceleration should see the pair reaching 1.6240 price zone, where several weekly highs and low converge to offer resistance. 


Support levels: 1.6100 1.6060 1.6020 


Resistance levels: 1.6160 1.6200 1.6240



USD/JPY Current price: 97.76


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Chances of seeing USD/JPY nearing again 100.00 this week are pretty tinny at the time being, with the pair opening below two major supports now turned resistances: post FOMC low of 97.76, and a daily descendant trend line coming from June low of 93.78, currently offering resistance around 97.90. In the hourly chart, price stands well below bearish 100 and 200 SMAs while indicators present a strong downward momentum, entering oversold territory. Technically however, there are no signs for a correction higher, with the pair exposed to extend it slide on an acceleration below 97.60 immediate support.


Support levels: 97.60 97.30 96.90


Resistance levels: 97.90 98.40 98.80 



AUD/USD Current price: 0.9312 


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Australian dollar can´t shrug off latest weakness, and trades steadily near the 0.9300 figure, presenting a bearish tone in the hourly chart, as price stands below a bearish 20 SMA while indicators head south in negative territory. In the 4 hours chart technical readings also support the downside, with a break below 0.9280 signaling further slides for today, and eyeing first 0.9240, where the pair will fill one of the two weekly opening gaps left in the last month. 


Support levels: 0.9280 0.9240 0.9200


Resistance levels: 0.9335 0.9370 0.9410 















































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